When must a company file micro-entity accounts instead of dormant accounts?

When it has had any significant accounting transaction in the period, even one — a Bounce Back Loan repayment, for example. Dormant accounts say nothing significant happened; micro-entity accounts report the little that did.

Does a single transaction really change which accounts to file?

Yes. Dormant under the Companies Act means no significant accounting transactions at all in the period, so a single payment or receipt means the company files micro-entity accounts for that year instead. The only exceptions are the few payments the law ignores: the confirmation statement fee, a change-of-name fee, a re-registration fee, a penalty for filing accounts late, and paying for the first shareholders' shares at formation.

What's the difference between micro-entity and dormant accounts?

By Ben Davies · Updated 26 September 2026

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Both are simplified accounts a small company files with Companies House, but they describe different situations.

Dormant accounts say nothing significant happened. They are filed when the company has had no significant accounting transactions at all in the period. The balance sheet is often just the nominal value of the issued shares. A company that traded before going dormant keeps its old figures (a loan from a director, an accrual) and shows them, as long as nothing about them changed in the year — nothing paid or collected, no interest added, nothing written off — see can a dormant company have assets and liabilities? Either way there is a statement that the company was dormant throughout.
Micro-entity accounts (FRS 105) say almost nothing happened, and here's the little that did. They are filed when the company isn't trading but has had a transaction or two — most commonly a loan it's repaying. The balance sheet shows the real figures (the loan, the cash), but it stays short, and no profit and loss account is filed.

What decides which you file

One question: did the company have any significant accounting transactions?

None at all → dormant accounts.
Some, but the company still isn't trading (e.g. repaying a Bounce Back Loan, whoever makes the payments) → micro-entity accounts.
It's actually trading → outside what DormantFile files. Many trading companies within the size limits can still file micro-entity accounts, but with real income and expenses you'll likely want an accountant — see micro-entity vs small-company accounts.

In both the first two cases, a CT600 — if HMRC has sent a notice to deliver one — shows no tax to pay. With DormantFile you choose dormant or micro-entity at filing time — see how it works.

Flat management and RTM companies face their own version of this choice, decided by where service charge money sits rather than a loan: trust-held charges keep the company dormant, charges run through its own bank account tip it into micro-entity. See is a flat management company dormant?.

What's the difference between micro-entity and dormant accounts?

What decides which you file

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